<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES
EXCHANGE ACT OF 1934 for the quarterly period ended June 29, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the transition period
from ____________ to ______________
Commission File Number 0-981
----------------------------
PUBLIX SUPER MARKETS, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Florida 59-0324412
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1936 George Jenkins Blvd.
Lakeland, Florida 33801
- ---------------------------------------- ---------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (941) 688-1188
--------------
Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--------- ---------
The number of shares outstanding of the Registrant's common
stock, $1.00 par value, as of August 2, 1996 was 219,445,429.
Page 1 of 9 pages
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
PUBLIX SUPER MARKETS, INC.
CONDENSED BALANCE SHEETS
(Amounts in thousands)
ASSETS
June 29, 1996 December 30, 1995
------------- -----------------
(Unaudited)
<S> <C> <C>
Current Assets
- --------------
Cash and cash equivalents $ 401,705 $ 276,700
Short-term investments 68,453 74,292
Accounts receivable 43,780 44,492
Merchandise inventories 498,103 542,886
Deferred tax assets 37,876 36,475
Prepaid expenses 6,992 3,269
---------- ----------
Total Current Assets 1,056,909 978,114
---------- ----------
Long-term investments 151,076 119,412
Investment in joint ventures 4,932 4,888
Other noncurrent assets 2,200 4,203
Property, plant and equipment 2,626,305 2,540,205
Accumulated depreciation (1,148,443) (1,087,457)
---------- ----------
Total Assets $2,692,979 $2,559,365
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
- -------------------
Current installments of long-term debt $ 831 $ 1,265
Accounts payable 469,150 500,399
Accrued contributions to retirement plans 129,194 67,348
Accrued salaries and wages 56,109 41,276
Accrued self-insurance reserves 62,584 58,442
Federal and state income taxes 45 1,318
Other 85,093 75,496
---------- ----------
Total Current Liabilities 803,006 745,544
---------- ----------
Long-term debt, excluding current installments 1,467 1,765
Deferred tax liabilities, net 105,576 103,707
Self-insurance reserves 62,142 60,435
Accrued postretirement benefit cost 35,306 33,197
Other noncurrent liabilities 50,291 ---
Stockholders' Equity
- --------------------
Common stock of $1 par value. Authorized
300,000,000 shares; issued 225,746,454
shares at June 29, 1996 and
December 30, 1995 225,746 225,746
Additional paid-in capital 85,442 85,280
Reinvested earnings 1,429,223 1,303,287
---------- ----------
1,740,411 1,614,313
Less treasury shares of 5,969,307
at June 29, 1996, at cost (104,905) ---
Unrealized gain (loss) on investment
securities available-for-sale, net (315) 404
---------- ----------
Total Stockholders' Equity 1,635,191 1,614,717
---------- ----------
Total Liabilities and Stockholders'
Equity $2,692,979 $2,559,365
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
-2-
<PAGE> 3
<TABLE>
<CAPTION>
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF EARNINGS
(Amounts in thousands except per share amounts)
Three Months Ended
June 29, 1996 July 1, 1995
------------- ------------
(Unaudited)
<S> <C> <C>
Revenues
- --------
Sales $ 2,525,535 $ 2,250,309
Other income, net 24,177 18,522
------------ ------------
Total revenues 2,549,712 2,268,831
------------ ------------
Costs and expenses
- ------------------
Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 1,948,239 1,724,026
Operating and administrative expenses 489,314 453,125
Interest expense 58 162
------------ ------------
Total costs and expenses 2,437,611 2,177,313
------------ ------------
Earnings before income tax expense 112,101 91,518
Income tax expense 41,494 33,870
------------ ------------
Net earnings $ 70,607 $ 57,648
============ ============
Weighted average number of common
shares outstanding 221,128,885 225,862,841
============ ============
Net earnings per common share $ .32 $ .26
============ ============
Cash dividends per common share $ .13 $ .11
============ ============
</TABLE>
See accompanying notes to condensed financial statements.
-3-
<PAGE> 4
<TABLE>
<CAPTION>
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF EARNINGS
(Amounts in thousands except per share amounts)
Six Months Ended
June 29, 1996 July 1, 1995
------------- ------------
(Unaudited)
<S> <C> <C>
Revenues
- --------
Sales $ 5,206,929 $ 4,644,938
Other income, net 46,976 41,154
------------ ------------
Total revenues 5,253,905 4,686,092
------------ ------------
Costs and expenses
- ------------------
Cost of merchandise sold, including store
occupancy, warehousing and delivery
expenses 4,032,543 3,560,733
Operating and administrative expenses 973,822 909,695
Interest expense 125 264
------------ ------------
Total costs and expenses 5,006,490 4,470,692
------------ ------------
Earnings before income tax expense 247,415 215,400
Income tax expense 92,295 80,533
------------ ------------
Net earnings $ 155,120 $ 134,867
============ ============
Weighted average number of common
shares outstanding 223,139,011 228,069,227
============ ============
Net earnings per common share $ .70 $ .59
============ ============
Cash dividends per common share $ .13 $ .11
============ ============
</TABLE>
See accompanying notes to condensed financial statements.
-4-
<PAGE> 5
<TABLE>
<CAPTION>
PUBLIX SUPER MARKETS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Six Months Ended
June 29, 1996 July 1, 1995
------------- ------------
(Unaudited)
<S> <C> <C>
Cash Flows From Operating Activities
- ------------------------------------
Cash received from customers $5,240,800 $4,671,222
Cash paid to employees and suppliers (4,712,449) (4,262,493)
Income taxes paid (92,648) (86,610)
Payment for self-insured claims (50,856) (47,477)
Other, net 10,570 7,581
---------- ----------
Net Cash Provided by Operating Activities 395,417 282,223
---------- ----------
Cash Flows From Investing Activities
- ------------------------------------
Payment for property, plant and equipment (105,402) (125,445)
Payment for investment securities -
available-for-sale (217,118) (142,278)
Proceeds from sale of investment securities -
available-for-sale 189,454 139,685
Other, net 2,754 2,282
---------- ----------
Net Cash Used in Investing Activities (130,312) (125,756)
---------- ----------
Cash Flows From Financing Activities
- ------------------------------------
Payment of long-term debt (732) (837)
Proceeds from sale of common stock 16,948 14,919
Payment for acquisition of common stock (127,132) (123,584)
Dividends paid (29,184) (25,250)
---------- ----------
Net Cash Used in Financing Activities (140,100) (134,752)
---------- ----------
Net increase in cash and cash equivalents 125,005 21,715
Cash and cash equivalents at beginning of
quarter 276,700 188,885
---------- ----------
Cash and cash equivalents at end of quarter $ 401,705 $ 210,600
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
-5-
<PAGE> 6
PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying financial
statements include all adjustments deemed necessary to
fairly reflect the financial position, results of
operations and changes in cash flows of the Company for the
interim periods presented.
2. Due to the seasonal nature of the Company's business, the
results for the three months and six months ended June 29,
1996 are not necessarily indicative of the results for the
entire 1996 fiscal year.
3. Certain 1995 amounts have been reclassified to conform with
the 1996 presentation.
-6-
<PAGE> 7
PUBLIX SUPER MARKETS, INC.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
Operating activities continue to be the Company's primary
source of liquidity. Net cash provided by operating
activities was approximately $395.4 million in the six months
ended June 29, 1996, as compared with $282.2 million in the
six months ended July 1, 1995. Cash and cash equivalents
totaled $401.7 million as of June 29, 1996.
Capital expenditures totaled $105.4 million in the six
months ended June 29, 1996. These expenditures were primarily
incurred in connection with the opening of 14 new stores and
the remodeling or enlarging of four stores which added .74
million square feet. In addition, the Company closed six
stores. Capital expenditures in the six months ended
July 1, 1995, were approximately $125.4 million. These
expenditures were primarily incurred in connection with the
opening of 21 new stores and the remodeling or enlarging of
nine stores which added 1.1 million square feet. Significant
expenditures were incurred in the continued construction of a
new distribution center in Lawrenceville, Georgia. In
addition, the Company closed three stores.
The Company has budgeted approximately $119.6 million for
the remainder of 1996 for new store construction and the
remodeling or enlarging of several existing stores. The
capital budget is subject to continuing change and review.
The remaining capital expenditures are expected to be financed
by internally generated funds and current liquid assets.
As of June 29, 1996 the Company has committed lines of
credit for $100.0 million and one uncommitted line of credit
for $25.0 million. These lines are reviewed annually by the
banks. The interest rate for these lines is at or below the
prime rate. No amounts were outstanding as of June 29, 1996.
Cash generated in excess of the amount needed for current
operations and capital expenditures is invested in short-term
and long-term investments. Management believes the Company's
liquidity will continue to be strong.
Operating Results
- -----------------
Sales increased 12.2% in the second quarter of 1996 to
$2,525.5 million, an increase of $275.2 million compared to
the same quarter in 1995. This represents an increase of
$155.8 million or 6.9% additional sales from stores that were
open for all of both quarters (comparable stores) and
additional sales of $119.4 million or 5.3% from the net impact
of new and closed stores since April 1, 1995. Other income
increased $5.7 million or 30.5% in the second quarter of 1996
as compared to the same quarter in 1995. This increase is the
result of the recognition of a $3.5 million loss on the
disposal of fixed assets at five closed stores during the
second quarter of 1995.
Sales increased 12.1% in the six months ended June 29,
1996, to $5,206.9 million, an increase of $562.0 million over
the six months ended July 1, 1995. This reflects an increase
of $282.7 or 6.1% in sales from comparable stores and sales of
$279.3 or 6.0% from the net impact of new and closed stores
since the beginning of 1995. Other revenue increased 14.1% in
the first six months of 1996 as compared to the first six
months of 1995.
Cost of merchandise sold including store occupancy,
warehousing and delivery expenses, as a percentage of sales,
was approximately 77.1% and 76.6% in the quarters ended June
29, 1996 and July 1, 1995, respectively. These cost of sales
percentages were 77.4% and 76.7% for the six months ended June
29, 1996 and July 1, 1995, respectively. The increases in
cost of merchandise sold, as a percentage of sales, are due to
competitive pressures.
-7-
<PAGE> 8
PUBLIX SUPER MARKETS, INC.
Operating and administrative expenses, as a percentage of
sales, were approximately 19.4% and 20.1% for the quarters
ended June 29, 1996, and July 1, 1995, respectively. The
operating and administrative expenses, as a percentage of
sales, were 18.7% and 19.6% in the six months ended June 29,
1996 and July 1, 1995, respectively. The significant
components of operating and administrative expenses are
payroll costs, employee benefits and depreciation.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
In Item 3 of the Company's Form 10-K for the fiscal year
ended December 30, 1995, reference was made to class action
litigation against the Company involving alleged violations of
Title VII of the Federal Civil Rights Act and Florida law with
respect to certain of the Company's retail employees. On
April 23, 1996, the Company sought reconsideration of the
Court's class certification order, or in the alternative, a
right to an immediate appeal of that order. This motion
remains pending.
As reported in the Company's Form 10-Q for the quarter
ended March 30, 1996, a suit seeking class action status was
filed on March 28, 1996 against the Company in the Federal
District Court for the Middle District of Florida, Tampa
Division, Case No. 96-608-Civ-T, by Kathy Watkins,
individually and on behalf of other persons similarly situated
(the "Watkins case"). In her Complaint, the plaintiff alleges
that the Company has developed, engaged in, promoted and
allowed in its manufacturing and supply facilities a system-
wide pattern and practice of employment discrimination that
results in lower positions, salaries and wages for women, as
well as the denial or delay of their advancement opportunities
and promotions, all in violation of Federal and Florida Civil
Rights Acts. The plaintiff seeks, among other relief, a
certification of the suit as a proper class action with
respect to all past and present female employees of the
Company at its manufacturing and support facilities who have
been adversely affected by gender discrimination, a
declaratory judgment that the Company's practices are
unlawful, back pay and other compensatory damages, punitive
damages, and injunctive relief against future improper
conduct.
In response to the Company's Motion to Dismiss and for
Summary Judgment, on August 7, 1996, the Court in the Watkins
case dismissed the plaintiff's class action claims. The
individual claims of alleged discrimination made by Mrs.
Watkins were not dismissed.
The Company intends to continue to vigorously defend the
remaining individual claims by Mrs. Watkins, as well as the
claims contained in the EEOC Charge and the Shores case that
were described in Item 3 of the Company's Form 10-K for the
fiscal year ended December 30, 1995.
Item 4. Results of Votes of Security Holders
- ---------------------------------------------
The Annual Meeting of Stockholders of the Company was held
on May 14, 1996, for the purpose of fixing the number of and
electing a board of directors. Proxies for the meeting were
solicited pursuant to Section 14(a) of the Securities Exchange
Act of 1934 and there were no solicitations in opposition to
management's solicitation. The number of directors was fixed
at nine and all of management's nominees for directors as
listed in the proxy statement were elected.
Item 6(a). Exhibits
- --------------------
27. Financial Data Schedule for the six months ended June
29, 1996.
Item 6(b). Reports on Form 8-K
- -------------------------------
No reports on Form 8-K were filed during the three months
ended June 29, 1996.
-8-
<PAGE> 9
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed in its behalf by the undersigned thereunto duly
authorized.
PUBLIX SUPER MARKETS, INC.
Date: August 9, 1996 /s/ S. Keith Billups
----------------------------------------------
S. Keith Billups, Secretary
Date: August 9, 1996 /s/ William H. Vass
----------------------------------------------
William H. Vass, Executive Vice President
(Principal Financial Officer)
-9-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements for the six months ended June 29, 1996, and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-START> DEC-31-1995
<PERIOD-END> JUN-29-1996
<EXCHANGE-RATE> 1
<CASH> 401,705
<SECURITIES> 68,453
<RECEIVABLES> 43,780
<ALLOWANCES> 0
<INVENTORY> 498,103
<CURRENT-ASSETS> 1,056,909
<PP&E> 2,626,305
<DEPRECIATION> (1,148,443)
<TOTAL-ASSETS> 2,692,979
<CURRENT-LIABILITIES> 803,006
<BONDS> 1,467
0
0
<COMMON> 225,746
<OTHER-SE> 1,409,445
<TOTAL-LIABILITY-AND-EQUITY> 2,692,979
<SALES> 5,206,929
<TOTAL-REVENUES> 5,253,905
<CGS> 4,032,543
<TOTAL-COSTS> 5,006,365
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 125
<INCOME-PRETAX> 247,415
<INCOME-TAX> 92,295
<INCOME-CONTINUING> 155,120
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 155,120
<EPS-PRIMARY> .70
<EPS-DILUTED> .70
